Again, I must apologize--more economic good news.

Merchant wholesalers increased both inventories and sales in March, according to figures released Tuesday by the Department of Commerce. The report showed that wholesale inventories increased by 1.1% in March following a 1.0% increase in February. Economists had expected inventories to rise by 1.0%.

With the bigger than expected monthly increase, wholesale inventories rose to their highest level since November of 2008.

Non-durable goods drove the increase in inventories in March, rising by 2.0%. Durable goods inventories also rose, although by a more modest 0.4%.

Inventories of machinery, equipment and supplies rose by 2.3%, while inventories of drugs, apparel and groceries also increased. Meanwhile, inventories of computers and computer equipment and software were drawn down, decreasing by 3.9%.

Additionally, the Commerce Department said wholesale sales surged up by 2.9% in March after edging down by 0.3% in the previous month. Sales of durable goods were up 2.3% in March, while non-durable goods saw an even stronger 3.4% increase in sales.

Reflecting higher oil prices, petroleum sales saw the biggest increase, rising 7.9%, while sales of lumber and construction materials increased 7.3% and sales of minerals and metals, excluding petroleum, were also up 6.7%.

Automotive sales on the wholesale level were the single sector of the economy to show a decrease, falling 1.4% following a 2.3% drop in February. Sales of furniture, up 4.1%, posted their largest monthly increase since December of 2009.

With sales rising at a faster rate than inventories, the wholesale inventories/sales ratio fell to 1.13 in March from 1.15 in the previous month."

And...

"Index Shows a Lull in U.S. Overland Volumes Before the Peak Season Storm
(International Freighting Weekly â Katerina Kerr)

April traffic dips, but year-on-year figures confirm recovery from recession

Growth in U.S. overland freight shipments increased only marginally last month, pointing to an economic slowdown before the anticipated summer peak season, according to the latest Cass freight index. The monthly index, published by Cass Information Systems, is based on data from more than 100 U.S.-based shippers and shows freight shipments increased by just 0.45% in April compared with March.

However, year-on-year road and rail volumes were up 12.3% last month. Cass said this increase indicated that, âalthough the economy is not expanding rapidly, it is climbing out of the depths of recessionâ.

The index showed a strong growth in rail freight volumes in the first two weeks of last month, but volumes declined after that.

âTruckers are experiencing capacity shortages,â says the report.

Parcel and small package carriers also reported a drop in business in the second half of the month.

But the report adds: âOverall, the first quarter of 2011 was solid, with growth in freight despite the weather that hampered logistics in January and February. Despite some potent signs that the economy has entered a lull, it should be short-lived as we move toward what are traditionally strong seasons for the freight industry.â

Additionally, the Commerce Department said wholesale sales surged up by 2.9% in March after edging down by 0.3% in the previous month. Sales of durable goods were up 2.3% in March, while non-durable goods saw an even stronger 3.4% increase in sales.